1. Decide what you are trying to do
Starting a credit history, rebuilding, avoiding annual fees and earning rewards lead to different categories. Our selector and comparison show these as educational categories so you know what to look at first. The CFPB lists secured cards, credit builder loans and retail cards as examples of products that can help people start or rebuild credit.
2. Read the real costs
The FTC recommends looking at the card agreement on the issuer’s website for interest and costs. Note the APR, annual fee and any other fees. The CFPB’s key terms page explains the language if a term is unfamiliar.
3. Understand what an application does
The CFPB says lenders usually run a credit check when you apply for a new card, which is a hard inquiry that affects your credit score, and that if you are only asking about rates they cannot pull your credit report. Because most models consider how often you apply, avoid applying to several cards just to see what happens.
4. Look at your own credit reports
The CFPB says you have the right to review your credit reports once per year and that doing so does not affect your scores. Reviewing them first lets you spot errors before a lender sees them.
5. Apply directly and be wary of promises
Apply on the issuer’s official site. Treat guaranteed approval, percentages of approval odds and similar claims with caution; the FTC has acted against “pre-approved” and “90% odds” claims it found deceptive.
Hypothetical example
Jordan wants a first card and can set aside a small deposit. Jordan uses the comparison to see that secured cards are one category to review, opens the issuer’s agreement for one card, writes down the fees, checks whether the issuer reports to the credit reporting companies, and reviews a free copy of a credit report. Only then does Jordan apply, once, on the issuer’s official site.
Pre-application checklist
- I know which category I want to review and why.
- I read the official agreement and wrote down the fees and APR.
- I know whether applying will be a hard inquiry.
- I reviewed my credit reports for mistakes.
- I am on the issuer’s official site and nothing promised me approval.
Sources
- CFPB: What are some ways to start or rebuild a good credit history? (opens in a new tab)
- FTC: Comparing Credit, Charge, Secured Credit, Debit, or Prepaid Cards (opens in a new tab)
- CFPB: Credit cards key terms (opens in a new tab)
- CFPB: When will my lender run or obtain a copy of my credit report? (opens in a new tab)
- CFPB: What is a credit inquiry? (opens in a new tab)
- FTC: FTC Finalizes Order Requiring Credit Karma to Pay $3 Million and Halt Deceptive ‘Pre-Approved’ Claims (Jan. 23, 2023) (opens in a new tab)
Sources checked October 13, 2026.